The Walmart 401(k) Plan

The Walmart 401(k) Plan

Walmart 401(k) Plan eligibility

2

Enrolling in the Plan

2

Your Walmart 401(k) Plan accounts

3

Making a rollover from a previous employer's plan or IRA

3

Making contributions to your account

4

Walmart's contributions to your Company Match Account

6

Investing your account

7

More about owning Walmart stock

8

Account balances and statements

9

Receiving a payout while working for Walmart

9

If you die: your designated beneficiary

10

If you get divorced

11

If you leave Walmart

12

If you leave and are rehired by Walmart

13

The income tax consequences of a payout

14

Filing a Walmart 401(k) Plan claim

15

Administrative information

16

Special tax notice addendum

18

Special tax notice addendum: Roth contributions

22

The legal name of the Plan is the Walmart 401(k) Plan. This document is being provided solely by your employer. No affiliate of Bank of America Corporation has reviewed or participated in the creation of the information contained herein.

2020 Associate Benefits Book | Questions? Log on to One. or call People Services at 800-421-1362

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The Walmart 401(k) Plan

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The Walmart 401(k) Plan

RESOURCES

Find What You Need

Online

Enroll in or change your pretax contribution and/or your catchup contribution

? NEW for February 1, 2020: you can make Roth contributions ? Enroll in or change your pretax, Roth, and/or your catch-

up contributions ? Request a rollover packet to make a rollover contribution ? Get a fee disclosure sheet ? Get information about your Plan accounts ? Get a copy of your quarterly statement ? Request a hardship withdrawal or a withdrawal after you

reach age 59? ? Change your investment fund choices ? Request a payout when you leave Walmart ? Get information about your Plan investment options ? Request a withdrawal of your rollover contributions ? Request a loan from your Plan account

Designate a beneficiary

Go to One. or Workday for Jet associates or the Plan's website at benefits. Go to benefits.

Go to One. or Workday for Jet associates

Other Resources Call the Customer Service Center at 8889684015

Call the Customer Service Center at 8889684015

What you need to know about the Walmart 401(k) Plan

? You are eligible to make your own contributions to the Plan as soon as administratively feasible after your hire date. You can contribute from 1% to 50% of your eligible pay each pay period.

? You can elect to make pretax salary deferral contributions and, beginning February 1, 2020, Roth salary deferral contributions. Pretax salary deferral contributions (and earnings thereon) are not subject to current federal income tax and, in most cases, state or local taxes, until distributed from the Plan. Roth salary deferral contributions are made on an after-tax basis, but the contributions and, in most cases, the earnings thereon are not subject to federal income tax when distributed to you (as long as the distribution meets certain requirements).

? If you are credited with at least 1,000 hours of service in your first year and contribute to your account, you begin receiving matching contributions on the first day of the calendar month following your first anniversary of employment.

? After you become eligible for matching contributions, Walmart matches each dollar you contribute, up to 6% of your eligible annual pay. (Contributions you make before you become eligible for matching contributions are not matched.)

? You are always 100% vested in the money you contribute and the money Walmart contributes to your Company Match Account.

? You choose how to invest all contributions to your Plan account.

? If you do not specify how your contributions will be invested, they are automatically invested in the Plan's default investment option, the myRetirement Funds.

? The Plan accepts rollover contributions from other eligible retirement plans. You can withdraw your rollover contributions at any time.

? You may request a loan from your Plan account, subject to Plan rules.

This is a summary of benefits offered under the Plan as of October 1, 2019. Should any questions arise about the nature and extent of your benefits, the formal language of the Plan document, not the informal wording of this summary, will govern.

The Walmart 401(k) Plan

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Walmart 401(k) Plan eligibility

ASSOCIATES WHO ARE ELIGIBLE TO PARTICIPATE IN THE PLAN

All associates of Walmart Inc. or a participating subsidiary are eligible to participate in the Plan, except:

example, if your date of hire is December 15, 2018, and you are credited with only 595 hours by December 15, 2019 (your first anniversary), but you work 1,095 hours during the February 1, 2019?January 31, 2020 Plan year, you will begin receiving matching contributions on February 1, 2020 with respect to any contributions you make to the Plan on or after that date.

? Leased employees; nonresident aliens with no income from U.S. sources; independent contractors or consultants

? Anyone not treated as an employee of Walmart or its participating subsidiaries

? Associates covered by a collective bargaining agreement, to the extent that the agreement does not provide for participation in this Plan

? Associates represented by a collective bargaining representative after Walmart has negotiated in good faith to impasse with the representative on the question of benefits, and

? Certain other associates who may be jointly employed by Walmart and an affiliate that is not a participating affiliate in the Plan.

For purposes of this Summary Plan Description, all participating subsidiaries are referred to as "Walmart."

WHEN PARTICIPATION BEGINS

For purposes of your contributions. If you are an eligible associate, you may begin contributing to the Plan as soon as administratively feasible after your date of hire is entered into the payroll system. See Enrolling in the Plan later in this summary for details about the enrollment process.

For purposes of matching contributions. If you are an eligible associate, you will begin receiving matching contributions on the first day of the calendar month following your first anniversary of employment with Walmart if you are credited with at least 1,000 hours of service during your first year and are contributing your own contributions (both pretax contributions and Roth contributions) to the Plan. (Matching contributions are not made with respect to contributions you make before you become eligible for matching contributions.) For example, if your date of hire was December 15, 2018 and you are credited with 1,095 hours by December 15, 2019 (your first anniversary), then you will begin receiving matching contributions on January 1, 2020, with respect to any contributions you make to the Plan on or after that date.

If you are not credited with 1,000 hours of service during your first year, your eligibility for the matching contributions will be determined on hours worked during the Plan year, which runs from February 1 to January 31. You will be eligible to receive matching contributions on any contributions you make to the Plan on or after the February 1 that follows the Plan year in which you are credited with at least 1,000 hours of service. For

HOW HOURS OF SERVICE ARE CREDITED UNDER THE PLAN

If you are an hourly associate, the hours counted toward the 1,000-hour requirement are credited as follows:

? Hours, including overtime hours, you work for Walmart or any subsidiary are counted.

? Hours for which you receive paid leave or personal time off are also counted.

? When a payroll period overlaps two Plan years, hours are credited toward the Plan year in which they are actually worked.

If you are a salaried associate or truck driver, the hours counted toward the 1,000-hour requirement are credited as follows:

? You are credited with 190 hours per month for each month in which you work at least one hour for Walmart or a subsidiary.

? In general, you must work at least six months of the Plan year to have 1,000 hours credited for the year. (Vacation paid to you in cash after you leave Walmart does not give you additional service for this purpose.)

If you become an associate of Walmart or any subsidiary as the result of the acquisition of your prior employer, special service crediting rules may apply to you.

Under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), veterans who return to Walmart or a subsidiary after a qualifying deployment may be eligible to have their qualified military service considered toward their hours of service under the Plan. Call People Services at 800-421-1362 for more details.

Enrolling in the Plan

Shortly after you become eligible to contribute to the Plan, (i.e., shortly after your date of hire), you will receive an enrollment packet at your home address on file. This packet tells you how you can make contributions from your pay into your 401(k) Account or Roth Account and explains how you can direct the investment of your Plan funds by choosing from among a menu of investment options with varying investment objectives and associated risks. Because the Plan is intended to be an important source for your financial security at retirement, you should read all information pertaining to the Plan carefully, and consult with your family, tax and financial advisors before making any decisions.

2020 Associate Benefits Book | Questions? Log on to One. or call People Services at 800-421-1362

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The Walmart 401(k) Plan

Once you satisfy the eligibility requirements for receiving matching contributions, Walmart will match all of your subsequent contributions dollar-for-dollar up to 6% of eligible annual pay, as explained in the Walmart's contributions to your Company Match Account section.

To begin contributing to the Plan, enroll online at One., Workday for Jet associates, or benefits.. You can also call the Customer Service Center at 8889684015. Note, however, that if you wish to make Roth contributions to the Plan, you must enroll at benefits.. You can enroll at any time after you become eligible.

When you enroll, you can choose:

? The percentage of your pay that you want to contribute on a per-pay-period basis and, after February 1, 2020, whether your contributions will be pretax contributions or Roth contributions (see Making contributions to your account later in this summary), and

? How to invest your accounts among the Plan's investment options. The Plan's investment options and procedures are described in your enrollment packet.

After you enroll, a confirmation notice will be mailed to your home address, or, if you have chosen electronic delivery of Plan materials, you will receive an email notification when the confirmation is available. The confirmation will show the percentage of your pay that you have chosen to contribute from each check, whether you elected to make pretax contributions or Roth contributions, and the investment options you have elected. Review the confirmation to make sure your enrollment information is correct.

Your contributions to the Plan will start as soon as administratively feasible, normally within two pay periods after you enroll. No contributions are taken from your pay before you become an eligible participant in the Plan. Only participants who contribute their own funds to the Plan will have those contributions matched by Walmart, subject to eligibility requirements outlined in the Walmart's contributions to your Company Match Account section.

It is your responsibility to review your paychecks to confirm that your election is implemented correctly. If you believe your election has not been implemented correctly, notify the Customer Service Center at 888-968-4015 in a timely manner so that corrective steps can be taken. Your notification will not be considered timely if it is made more than six months after the date you make your election.

? Roth Account: This account holds your Roth contributions to the Plan on or after February 1, 2020 (including your Roth catch-up contributions, if any), as adjusted for earnings or losses on those contributions.

? Company Match Account: This account holds Walmart's matching contributions, as adjusted for earnings or losses on those contributions.

? Pretax Rollover Account: This account holds any contributions that you rolled over to this Plan from another eligible retirement plan, as adjusted for earnings or losses on those contributions.

? Roth Rollover Account: This account holds any amounts you rolled over to this Plan from your designated Roth salary deferral account in another eligible retirement plan.

? Company Funded 401(k) Account: This account holds the discretionary Walmart contributions to the 401(k) portion of the Plan made for Plan years ended on or before January 31, 2011, as adjusted for earnings or losses on those contributions.

? Company Funded Profit Sharing Account: This account holds the discretionary Walmart contributions to the profit-sharing portion of the Plan made for Plan years ended on or before January 31, 2011, as adjusted for earnings or losses on those contributions.

The chart on the following page provides a summary of some of the differences between these accounts. These differences are discussed in more detail throughout this summary.

Note that if you become an associate of Walmart or any subsidiary as the result of the acquisition of your prior employer, and you participated in your prior employer's 401(k) plan, you may have other accounts in this Plan that hold amounts you contributed to your prior employer's plan.

Making a rollover from a previous employer's plan or IRA

When you come to work for Walmart, you may have funds owed to you from a previous employer's retirement plan (including a 401(k) plan, a profit-sharing plan, a 403(b) plan of a tax-exempt employer or a 457(b) plan of a governmental employer). If so, you may be able to roll over that money to this Plan. You may also roll over pretax funds you have in an individual retirement account (IRA). You may directly roll into the Plan amounts from a designated Roth salary deferral account in another qualified retirement plan. If you roll over funds to this Plan, keep these points in mind:

Your Walmart 401(k) Plan accounts

The Walmart 401(k) Plan consists of several accounts. You will have some or all of the following accounts:

? Pretax Account: This account holds your pretax contributions to the Plan (including your catch-up contributions, if any), as adjusted for earnings or losses on those contributions.

? Once you roll funds into the Walmart 401(k) Plan, those funds are subject to the rules of this Plan, including payout rules, and not the rules of your former employer's plan or your IRA

? Your rollover contribution will be placed in your Rollover Account and will be 100% vested, and

? You may withdraw all or any portion of your rollover contributions at any time.

The Walmart 401(k) Plan

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If you're interested in making a rollover contribution to the Plan, contact the Customer Service Center at 8889684015 or visit benefits. to obtain a rollover packet.

Making contributions to your account

After you become a participant in the Plan, you may generally choose to contribute from 1% up to 50% of each paycheck to your Pretax Account and/or your Roth Account. Your contributions (including both pretax contributions and Roth contributions) in any calendar year, however, may not exceed a limit set by the IRS. For 2019, the limit is $19,000. This amount will be increased from time to time by the IRS.

The IRS also limits the amount of annual compensation that can be taken into account under the Plan for any participant. For 2019, this limit is $280,000.

On and after February 1,2020, you can choose whether your contributions will be "pretax contributions" and/or "Roth contributions." Together, these contributions are called your "401(k) contributions" in this summary. (Before February 1, 2020, all 401(k) contributions are pretax contributions.)

? Pretax contributions are deducted from your pay before federal income taxes are withheld. This means that you don't pay federal income taxes on amounts you contribute to the Plan. Earnings on these contributions accumulate tax-free and are not taxed until your Pretax

Account is actually distributed to you from the Plan. You may also save on state and local taxes as well, depending on your location. Please note that your contributions are subject to Social Security taxes in the year the amount is deducted from your pay. Distributions from the Plan, however, are not subject to Social Security taxes.

? Roth contributions are deducted from your pay after federal income taxes are withheld. This means that you pay federal and state income taxes, and also Social Security taxes, on amounts you contribute to the Plan in the year the amount is deducted from your pay. Roth contributions, and earnings on those contributions, are normally not subject to federal and state income tax when your Roth Account is distributed to you from the Plan. In order for the earnings to be tax-free, the distribution must be a "qualified" distribution, as explained later. (Note that income limitations applicable to Roth IRAs are not applicable to Roth contributions to the Plan. You may choose to make Roth contributions regardless of your income.)

In addition, if you make contributions to the Plan, you may be eligible for a "Saver's Credit." If you are a married taxpayer who files a joint tax return and you have a modified adjusted gross income (MAGI) of $64,000 or less (for 2019) or a single taxpayer with $32,000 or less (for 2019) in MAGI on your tax return, you are eligible for this tax credit, which can reduce your taxes. For more details, your tax preparer may refer to IRS Announcement 2001-106.

PROFIT SHARING AND 401(K) ACCOUNT DIFFERENCES

Pretax Account/ Roth Account (including catch-up contributions)

Company Match Account

All Rollover Accounts

Company Funded 401(k) Account

Company Funded Profit Sharing Account

Source of contributions

You

Walmart

You Walmart

Walmart (except for rollovers you made to the Profit

Sharing Plan)

May participants choose

investments? Yes

Yes

Yes Yes

Yes

Vesting percentage

100%

100%

100% 100%

2 years -- 20% 3 years -- 40% 4 years -- 60% 5 years -- 80% 6 years -- 100% (Rollovers are immediately 100% vested)

Are hardship withdrawals available?

Yes

Are in-service withdrawals available

after age 59??

Yes

Yes, beginning Feb. 1, 2020

Yes

Yes, beginning Feb. 1, 2020

Yes, beginning Feb. 1, 2020

Yes

Yes Yes

Yes (to the extent vested)

2020 Associate Benefits Book | Questions? Log on to One. or call People Services at 800-421-1362

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